Retirement savings not nearly enough for most Americans

Retirement savings not nearly enough for most Americans

The retirement savings of middle-class Americans are not nearly enough to sustain them when they enter retirement age. The survey issued by Wells Fargo & Co. on Wednesday revealed that most Americans feel a $300,000 retirement fund will be sufficient for them. But they have only saved $20,000 on average, or just seven percent of their target. It will imply that they might be forced to work well into their senior years to keep themselves afloat especially if the downturn drags longer. Americans who are considered middle-class are those from 30 to 69 years old who earns $40,000 to $100,000 or those with assets of $25,000 to $100,000.

"Too many  Americans have their heads in the sand in the face of obvious savings deficits," said Wells Fargo Institutional Retirement Trust director Laurie Nordquist. "Barring a miracle, a winning lottery ticket or a big inheritance, they're going to be forced to dramatically cut back their lifestyles after retirement."

Another worrisome figure is the meager retirement savings of Americans who are most nearing retirement. Participants aged 50 to 59 said they have only set aside $29,000 for their retirement years. As many as one-third are resigned to the idea that they will have to continue to work to sustain their needs. Many respondents said they will also be dependent on their Social Security benefits. But some are not optimistic that the benefits can help them much. Still others said that at the very least benefits of any kind would certainly help augment their retirement savings.

Posted by James Fried on Thursday December 09 2010, 2:57 AM EST. Ref: ABC News. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0